Updated from 9:44 a.m. EDT
Audio system maker
on late Friday confirmed that two potential buyers intended to pull out of an $8 million buyout deal.
Kohlberg Kravis Roberts and
told the company they believe "a material adverse change" had affected Harman's business and that the company had breached the merger agreement, Harman said in a press release shortly before the closing bell.
Harman said it "disagrees that a material adverse change has occurred or that it has breached the merger agreement."
The company's shares had plummeted more than 20% Friday, after
The Wall Street Journal
, citing sources familiar with the deal, reported KKR and Goldman were having second thoughts.
Shares fell $23.45 to $88.80.